Nearly 1-in-4 Washington employers considering leaving the state, new survey shows
May 4, 2026, 5:37 PM | Updated: 5:40 pm
Nearly 1-in-4 Washington employers are considering moving their businesses out of the state, according to a survey from the Association of Washington Business (AWB) published Monday.
AWB reported that 24% of employers are looking into relocating — up from 17% in the previous quarter and nearly triple the number from the association’s winter 2025 survey.
“I believe it’s a 911 emergency for our state’s economy,” AWB President Kris Johnson told KIRO Newsradio.
The personal migration trend is even steeper. Another 55% said they are considering moving their personal residence to another state, a 44% increase from the previous quarter, according to a news release from AWB.
“In Spokane County, a short drive from the Idaho border, 67% of respondents said they were considering moving their personal residence to another state,” the report stated.
The survey was based on 407 responses.
Key findings from AWB spring 2026 employer survey
- Tax burden: 72% of respondents rate Washington’s overall tax burden as a top business challenge, up from 64% last quarter and up 18 points since winter 2025.
- Economic confidence: 7% rate Washington’s economy as strong or very strong, down from 10% last quarter and down 16 points since winter 2025.
- Business growth: 22% say their business is growing, up slightly from last quarter but down 5 points since winter 2025.
- Expansion plans shifting out of state: 9% plan to expand in Washington in the next year, down from 20% in winter 2025, while 38% are planning to expand in another state, up from 21% in winter 2025.
- Recession expectations: 46% expect a recession in the next year, up from 34% last quarter and up 29 points since winter 2025.
The cost of healthcare came in second on the list of business challenges behind the state’s overall tax burden, with 65% citing it as a concern. Government regulations ranked third at 58%, and the cost of fuel came in fourth, with 53% flagging it, the release said.
AWB president warns lawmakers: Businesses are already leaving Washington
“It’s tempting for lawmakers to dismiss this kind of report and to suggest that businesses won’t really leave, but that would be a mistake,” Johnson said. “We are already seeing evidence of employers moving operations or moving their personal residence to other states, and we expect to see more in the coming years as plans that are being made right now are put into motion.”
Among the businesses considering moving out of Washington, 18% are developing a relocation plan, and 7% have secured a new location elsewhere, according to the survey.
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Other states are actively courting Washington employers
Johnson told KIRO Newsradio that other states are encouraging businesses to leave.
“Seventeen percent of respondents say they’ve already been contacted by an out-of-state economic development official,” he said. “That means our employers are being courted by other states. They’re being courted to move personally, and they’re being courted to move their businesses. So other states are lining up to recruit the golden goose that we have, this amazing economy that we have.”
AWB conducts the survey each quarter. This latest survey was conducted between April 8 and April 22, 2026.
Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.
